Jerome Powell's most important statements as Chairman of the U.S. Federal Reserve $BNB
The most prominent statement made by the Chairman of the U.S. Federal Reserve, Jerome Powell, yesterday:
The economy is strong, and the U.S. labor market is solid and resilient, but inflation remains somewhat high.
The U.S. Federal Reserve decided to lower the pace of federal budget cuts.
Recent data indicates a slowdown in consumer spending levels.
The state of uncertainty is affecting economic expectations.
The labor market has not been and is not a cause of inflationary pressures.
Inflation expectations have recently risen, and tariffs are behind this increase.
The long-term inflation expectations are 2%, which is close to the Federal Reserve's inflation target.
The new political administration is implementing many political changes, and the net impact of these policies is what matters to us and to U.S. fiscal policy.
The state of uncertainty associated with political variables and economic impact is high.
I am very focused on separating financial signals from all the noise surrounding them.
If the economy remains strong, we can maintain a tight policy for a longer period.
If we detect a slowdown in the labor market, we will implement the necessary financial measures and ease monetary policy as the situation requires.
We have seen some signs of increased tightness in financial markets. Market indicators suggest that the quantity of reserves is abundant.
The Federal Reserve's objectives should remain balanced, which is a strong challenge, but currently, things are not perfectly balanced.
Experts have raised their recession expectations, but it is still a weak prediction.
Michigan University's inflation expectations are out of the ordinary.
It is hard to determine when we can describe our expectations as reliable; I believe we will reach this stage, but we need some time.
The reason we expect a reduction in interest rates despite negative inflation expectations is the presence of some forecasts indicating that economic growth will be weaker, which are two opposing factors. So far, we see the economy as strong and we will update our forecasts according to the data.